Question

Part AThe partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

When the liquidation commenced, expenses of $16,000 were anticipated as being necessary to dispose of all property.Prepare a predistribution plan for this partnership.Part BThe following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:• Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible.• Sold the land, building, and equipment for $150,000.• Made safe capital distributions.• Learned that Guthrie, who has become personally insolvent, will make no further contributions.• Paid all liabilities.• Sold all inventory for $71,000.• Made safe capital distributions again.• Paid liquidation expenses of $11,000.• Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.Prepare journal entries to record these liquidationtransactions.